Abstract: Magnetostrictive powder composite and method for the manufacturing of the magnetostrictive powder composite. The composite comprises magnetostrictive powder grains with chemical composition (RE).sub.x T.sub.1-x, where RE represents one or a mixture of several rare earth metals, T represents iron, nickel, cobalt, manganese or a mixture of these metals and x represents atomic fraction assuming a value between 0 and 1, whereby the grains are held together by a binder. The magnetostrictive grains constitute greater than 60 percent by volume of the composite. The composite is produced by pressing together magnetostrictive powder grains and the binder. Isostatic pressure may be used in the pressing step.